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India is now positioned as a leading player in forging: Yash Munot
Articles- Aug 30,25
In this interview with Rakesh Rao, Yash Munot, President, Association of Indian Forging Industry (AIFI), highlights India’s readiness to strengthen its global position in forging, and importance of innovation, automation and sustainability.
India’s forging industry has grown into the second-largest globally, with an installed capacity of 3.85 million metric tonnes. Despite challenges such as rising US tariffs, Chinese imports, and global uncertainty, the sector remains optimistic, with opportunities in electric vehicles (EVs), aerospace, defence, and emerging markets. In this interview with Rakesh Rao, Yash Munot, President, Association of Indian Forging Industry (AIFI), and CEO, Varsha Forgings Pvt Ltd, highlights India’s readiness to strengthen its global position in forging, and importance of innovation, automation and sustainability.
What is the current state of the Indian forging industry in terms of capacity, global competitiveness, and technological readiness?
The Indian forging industry today stands on a solid foundation. We have an installed capacity of nearly 3.85 million metric tonnes (38.5 lakh MT), covering a wide range of materials, including carbon steel, stainless steel, titanium, and superalloys. Over the years, the industry has attracted investments of around Rs 278.33 billion in plant and machinery.
India is now the second-largest forging nation globally, known for its technical competence and adherence to international quality standards. However, it is important to note that nearly 83 per cent of our industry still comprises small and very small units, many of which remain reliant on manual operations. Medium and large enterprises, by contrast, are steadily adopting mechanisation, automation, and modern technologies, strengthening our global competitiveness.
With the global forging market projected to grow at a CAGR of 5.2 per cent, what role will Indian forging companies play in this expansion?
The global forging market, valued at $ 76.5 billion in 2023, is expected to grow at a CAGR of around 5.8 per cent. India already accounts for 11.7 per cent of the global market, with the domestic industry valued at $ 10.24 billion in 2023 and projected to reach $ 17.92 billion by 2030 at a CAGR of 8.3 per cent.
This growth trajectory shows India’s ability to strengthen its global footprint and emerge as a key driver of worldwide expansion. Our cost competitiveness, consistent quality, and increasing export capacity position us strongly to contribute to this growth story.
What are the major challenges currently facing the Indian forging sector, and how can they be addressed?
The industry is facing multiple headwinds — rising US tariffs, growing imports from China, and overall global market uncertainty. These factors put significant pressure on export margins and affect competitiveness.
To overcome these challenges, we must differentiate through value-added solutions and superior quality. Leveraging digitalisation will be critical to ensuring faster and more efficient deliveries. Additionally, diversifying into high-potential sectors such as EVs, aerospace, and defence will help reduce dependence on traditional markets. At the same time, strengthening cluster-based infrastructure, advocating for fair trade policies, and investing in workforce upskilling — particularly through AIFI’s GenNext Entrepreneurs Forum — will be key to building long-term resilience.
Which end-user industries are currently driving demand for forged components in India?
The automotive sector remains the largest consumer, accounting for nearly 58 per cent of total forging production. Alongside this, the fast-growing aerospace and defence segments are creating significant demand for high-precision forgings. Railways, power, industrial machinery, and infrastructure are also contributing to a more diversified demand base, which is vital for the industry’s long-term stability.
How prepared is the forging industry to embrace automation, AI, and digitalisation under the Industry 4.0 framework?
The Indian forging sector is at the threshold of a digital transformation. Advanced technologies such as CNC automation, precision forging, and simulation tools are steadily being adopted, particularly by larger companies. A good example is Balu Forge, which is establishing a state-of-the-art, Industry 4.0-compliant facility in Belagavi with a capacity of 72,000 tonnes annually, integrating closed-die hammers and mechanical presses.
However, the pace of adoption among MSMEs remains limited. To realise the full benefits of Industry 4.0, we must accelerate digital literacy, improve access to affordable technologies, and encourage investments through supportive government policies and incentives.
With sustainability gaining importance, what steps are forging companies taking to reduce energy consumption and adopt green practices?
Sustainability has become a cornerstone of our industry’s future. Companies are investing in renewable energy, resource efficiency, and circular practices. A notable example is MIDHANI, which has established a 4 MW solar power plant generating around 7,000 MWh annually, meeting 15 per cent of its energy needs, saving approximately Rs 50 million each year, and offsetting about 5,600 tonnes of CO? emissions.
Through AIFI’s collaboration with the Bureau of Energy Efficiency (BEE) under the ADEETIE scheme, member companies are also accessing financial incentives, energy audits, and technical support to implement energy-efficient technologies. These initiatives are propelling the industry towards green manufacturing and long-term sustainability.
Recently, AIFI signed an MoU with BEE to promote energy efficiency in the forging industry. How will this benefit the sector?
This MoU is a milestone for the forging sector. With a Rs 10 billion budget supporting Rs 90 billion in investments—including Rs 67.50 billion earmarked for MSMEs—the scheme provides 5 per cent interest subvention for micro and small enterprises and 3 per cent for medium enterprises. In addition, it offers financial support for audits and technology deployment.
This framework will enable MSMEs to modernise without unsustainable cost burdens, leading to higher productivity, lower energy use, and stronger compliance with environmental standards. AIFI will play a crucial role in ensuring that members can access and benefit from these schemes.
With emerging economies reshaping global supply chains, what opportunities lie ahead for Indian forging exporters?
Emerging markets, particularly in the Asia-Pacific region, present significant opportunities. India is now positioned alongside China and Japan as a leading player in forging investments. Supported by policies such as Make in India and export incentives, Indian companies are well placed to capture a larger global share.
Continued government efforts through trade agreements and infrastructure development will further strengthen our competitiveness, enabling Indian forging firms to expand their global footprint.
How do you see leadership and innovation transforming the industry in the next decade, and what role will AIFI play?
Visionary leadership and continuous innovation will be the cornerstones of our industry’s transformation. The focus will be on lightweight alloys, robotics, AI-driven process optimisation, and hybrid additive-forging technologies, which can reduce material waste by up to 40 per cent.
At AIFI, our mission is to act as a catalyst for this change by promoting R&D collaboration, building public–private partnerships, modernising clusters, and expanding initiatives such as the GenNext Entrepreneurs Forum. This will ensure that the Indian forging sector continues to be competitive, sustainable, and innovation-driven on the global stage.
4 Blurbs (Optional)
The automotive sector drives 58% of forging demand, but aerospace, defence, and infrastructure are fast strengthening the mix.
Digital transformation through Industry 4.0, CNC automation, and simulation tools is redefining forging operations in India.
Sustainability is now a cornerstone, with initiatives like solar energy and circular forging shaping a greener future.
The domestic forging market is set to grow from $ 10.24 billion in 2023 to nearly $ 18 billion by 2030.
Yash Munot
Association of Indian Forging Industry
AIFI
Indian Forging Industry
Global Forging Market
Industry 4.0
EV & Aerospace Forgings
Sustainable Manufacturing
Forging Sector Challenges
Varsha Forgings
Rakesh Rao
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